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Author: RecoveringFool Big gold star, 5000 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 121351  
Subject: Rollover IRAs Date: 3/13/1998 1:10 PM
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From what I can tell we will have more than we need in retirement accounts. I also have 403bs from former employers. Can I roll those into an IRA which I could later hit for educational expenses for my kids ? If so how long does the money have to be in the IRA ? (This all refers to regular not Roth -to move our current IRAs to Roths requires way to much money to pay taxes.) Thanks
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Author: bagman1 One star, 50 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 2641 of 121351
Subject: Re: Rollover IRAs Date: 3/13/1998 6:09 PM
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Be careful about rolling your 403b into an IRA, because 403b accounts have special withdrawal privileges after age 55 (I believe). With a regular IRA, you have to wait to 59 1/2 before penalties are forgiven. I have elected to leave a large portion of my 403b intact for this reason, since my son will be in college about the time I reach 55. Anyhow, I would not rush to convert your 403b until you look at its provisions closely.

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Author: TMFTaxes Big gold star, 5000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 2736 of 121351
Subject: Re: Rollover IRAs Date: 3/17/1998 11:27 AM
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[[From what I can tell we will have more than we need in retirement accounts. I also have 403bs
from former employers. Can I roll those into an IRA which I could later hit for educational expenses
for my kids ? If so how long does the money have to be in the IRA ? (This all refers to regular not
Roth -to move our current IRAs to Roths requires way to much money to pay taxes.) Thanks]]

No problem moving your 403b funds to a rollover regular IRA. No problem at all. And, since the rollover would be to a regular IRA, there are no time limits that the funds have to be in place before you can remove the funds to pay for qualified higher education expenses and avoid the IRA penalty (but not the tax).

Just make sure that the student, institution, and expenses are all qualified for this purpose. The college should be able to provide you with detail informaion on these new tax breaks. You might want to check 'em out.

TMF Taxes
Roy

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